Government’s online marketplace GeM opens door for ecommerce talent

GeM is a portal for all official procurement by the govt for its common use items such as laptops, furniture or even automobiles and services like renting cabs.Kirtika Suneja | ET Bureau | April 14, 2017, 08:38 IST

The decision to engage private sector experts came after the Union Cabinet ordered closure of the DGS&D by October 31.NEW DELHI: Professionals working with the likes of Flipkart, Snapdeal and Amazon may soon get an opportunity to work with the new ecommerce giant in India— the Government e-Marketplace or GeM.

GeM is a portal for all official procurement by the government for its common use items such as laptops, furniture or even automobiles and services like renting cabs. It will replace the government’s central purchase department, the Directorate General of Supplies & Disposal (DGS&D), which is set to wind up later this year.

Though the portal will be owned by the government, it will be run through a special purpose vehicle (SPV) comprising both bureaucrats and professionals that the government plans to hire from the private sector.

“The SPV will have its own board of directors and 66 permanent posts. The rest will be professionals with market domain knowledge. We will hire professionals as and when required,” said an official aware of the development, adding that getting experts in business analytics and services will be a priority.

The decision to engage private sector experts came after the Union Cabinet ordered closure of the DGS&D by October 31.

The GeM is expected to drive significant cost savings for the government by bringing transparency in procurement.

As per official estimates, average prices on GeM are lower by 15-20% in comparison to the tender, rate contract and direct purchase rates. Moreover, demand aggregation for most of the common use goods and services is estimated to result in annual savings to the tune of Rs 40,000 crore per annum.

The official quoted above said the SPV will be incorporated by July. The government had earlier thought of winding up the DGS&D in 1991 and 2010 but the plan did not materialise in the absence of an alternative.

“Some officials of the directorate will stay with GeM and others would get redeployed elsewhere in the government,” the official added.

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